The recovery in the housing market continues to pick up steam, as home prices posted the biggest percentage gain in more than two years in the latest reading of the closely followed S&P/Case-Shiller index.
The index showed prices up 4.3% in October compared to a year earlier. That’s the best improvement since May 2010. But that earlier increase was due to a temporary spike caused by a homebuyers’ tax credit of up to $8,000 on homes purchased in late 2009 and early 2010.
This latest rise comes as the housing market has shown numerous other signs of recovery in recent months. A combination of near record-low mortgage rates, lower unemployment and a drop in foreclosures to a five-year low means there are more buyers interested in purchasing fewer available homes. That in turn has lifted prices.
October marked the fifth straight month that the index has been up on a year-over-year basis.